Direct Debits

Bagley

I recently discovered 2 direct debits had been set up on my current bank account. These were new and no money had gone. I did not set these up or authorise anyone to set them up so I assumed some fraudulent activity. On contacting the bank I was advised that they do not notify customers when new direct debits are set up but only after the first payment has been made. This seems to be an issue that needs addressing. I would like to know of any direct debits set up on my bank account before money goes rather that after. Any thought anyone ? 

la531983

Given you can claim them back anyway, through the DD Guarantee, there is no issue to address.

Brie

la531983 said:

Given you can claim them back anyway, through the DD Guarantee, there is no issue to address.

Yes but if you are on a tight budget knowing that money might disappear for a time might be very helpful.  

Do you have notifications set up for your account?  My banks seem very eager to tell me any time I try to access my accounts or when something significant happens so perhaps the thing that you are missing?  It's been a few years since I've set up a new DD so not sure whether I would get a text/email about this or not.

friolento

I believe some of the newer banks tell you a day or two in advance if a DD payment is due. Not sure any if them notify you of any new DD mandates. I agree that generally it is not an issue as only authorised companies / recipients can set up DDs, and we all have the DD guarantee. It is difficult to find statistics about the use of the DD guarantee but it appears it’s a tiny number 

If advance notification is important to you, it might be worth checking out Starling, Monzo, Revolut, Chase or Kroo. 

DE_612183

Bagley said:

I recently discovered 2 direct debits had been set up on my current bank account. These were new and no money had gone. I did not set these up or authorise anyone to set them up so I assumed some fraudulent activity. On contacting the bank I was advised that they do not notify customers when new direct debits are set up but only after the first payment has been made. This seems to be an issue that needs addressing. I would like to know of any direct debits set up on my bank account before money goes rather that after. Any thought anyone ? 

what are the DD's for - who is the payment being made to?

When were they set up?

Nasqueron

RBS and NatWest tell you when a new DD is taken and you have until 8pm or something to cancel the payment

MyRealNameToo

Nasqueron said:

RBS and NatWest tell you when a new DD is taken and you have until 8pm or something to cancel the payment

Their own bank already tells them when a first payment is taken, and you have much longer to dispute it under the guarantee and any dispute must be repaid instantly. 

They were asking for a bank that tells you when its set up not when the first payment is taken

Rob5342

Monzo is great for this. You get a notification when a new direct debit is set up and they show up in your account several days before they are taken. They show the details as soon as the direct debit request starts making its way through the system so it's the exact payment that will be taken rather than a prediction. They really do put the old fashioned banks to shame. 

friolento

Rob5342 said:

Monzo is great for this. You get a notification when a new direct debit is set up and they show up in your account several days before they are taken. They show the details as soon as the direct debit request starts making its way through the system so it's the exact payment that will be taken rather than a prediction. They really do put the old fashioned banks to shame. 

Yet there is nothing as yet that would tempt me from swapping my trusted Santander for Monzo (or other challenger bank). I do manage my cashflow with personal finance management software rather than with a current account, and I do prefer accounts with tangible financial perks. Over the years, I have made many thousands in Santander, from interest on current account balances, CASS offers, cashback on bills, market-leading interest rate savings accounts, and from cashback offers for opening Santander accounts via affiliates. 

Yes, Santander don't tell me when a new DD has been set up. I don't consider this an issue as I have never had an unauthorised DD mandate in all the decades since DD came into being (in 1968), and if there ever was one, the DD guarantee would see me right.

born_again

Bagley said:

I recently discovered 2 direct debits had been set up on my current bank account. These were new and no money had gone. I did not set these up or authorise anyone to set them up so I assumed some fraudulent activity. On contacting the bank I was advised that they do not notify customers when new direct debits are set up but only after the first payment has been made. This seems to be an issue that needs addressing. I would like to know of any direct debits set up on my bank account before money goes rather that after. Any thought anyone ? 

You can get t his set up with some banks. but it is a PIA as it can cause issues with genuine DD's being set up.

wmb194

Via notifications from its app, a couple of weeks ago I'm pretty sure Lloyds told me a new DD had been setup and it certainly tells you on the days they're paid. 

It also has an advance warning notification about payments it thinks might be due in the week ahead with estimated amounts based on previous payments but it won't pick up on brand new ones.

https://www.lloydsbank.com/help-guidance/everyday-banking/statements/upcoming-payments.html